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David J Smith GS1 Director, Omni-Channel IE
How GS1 is enabling its members to meet the needs of the 21st Century shopper Transforming business together
Tuesday November 29th 2016
© GS1 2015 2
Introduction to GS1
© GS1 2015
The global language of business
3
Serving over
one million companies
2,500 people
helping us to achieve our vision
Across
150
countries
Over
20
sectors 112
Member Organisations
More than
6 billion barcodes read all over the planet
every day
© GS1 2015
The commerce graph
4
© GS1 2015
Retail from a consumer perspective: standards make it possible
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Providing a seamless consumer experience across physical and digital channels
© GS1 2015
Omnichannel - a multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store.
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© GS1 2015
GS1 standards for Omni-Channel Retail
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© GS1 2015
Why do we need global omni-channel standards?
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Grow the Business
Reduce Costs
Leverage Consumer Insights
Manage Risk
GS1 standards make it easy for people to discover and purchase products wherever they are so that you can…
© GS1 2015
What is your biggest challenge?
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Web-Ready Products
Inventory Visibility
Fulfilment Strategy
Business Intelligence
Risk & Compliance
Grow the Business
Reduce Costs
Leverage Consumer Insights
Manage Risk
© GS1 2015
How GS1 helps
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Grow the Business
Reduce Costs
Leverage Consumer Insights
Manage Risk
Better Search Results
Improved Product Information
Optimised Consumer Fulfilment
Smarter Analytics
Safer Products, Fewer Counterfeits
© GS1 2015
Source: Internetworldstats, 2015
Internet penetration
Up to 10%
Up to 20%
Up to 30%
Up to 40%
Up to 50%
More than 50%
www.ecommercefoundation.org
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Global Internet Penetration
© GS1 2015
Global B2C E-commerce Report 2016
Ecommerce Foundation Raadhuisstraat 22 1016 DE Amsterdam, the Netherlands
Website: www.ecommercefoundation.org Information: [email protected] Twitter: @Ecomfound
In cooperation with: Executed by:
Ecommerce data provided by….
© GS1 2016
E-Commerce today
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• 70% of all sales are influenced by information consumers find on the web.
© GS1 2016
Where buyers shop
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© GS1 2016
Consumers shop Internationally
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1,006000 1,101000 1,150000 1,183000 1,193000 1,185000 1,171000
,309000 ,361000
,451000 ,571000
,715000 ,848000 ,943000
2014 2015 2016 2017 2018 2019 2020Domestic Online Shoppers (Billions) Cross Border Shoppers (Billions)
Source: Alizila 2015
MORE THAN 900 MILLION CONSUMERS (45% OF ALL ONLINE SHOPPERS) WILL PURCHASE PRODUCTS
INTERNATIONALLY BY 2020
© GS1 2016
Marketplaces globally
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© GS1 2016
Marketplaces globally
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Global market places are expected to own nearly 40% of online retail market in 2020. * Source: Rise of the Global Market Places research conducted by Ecommerce Foundation and Nyenrode Business University
© GS1 2016
Two big name Marketplaces
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• 162 million active buyers
• 800 million listings worldwide
• 314 million mobile app downloads
• 244 million active customer
• 54 million Prime customers
• 44% of buyers start their search on Amazon*
• 48% products sold by marketplace retailers
* http://venturebeat.com
© GS1 2016
Local Marketplaces are becoming the go-to destination for online shoppers
• 60% of Polish ecommerce transactions take place on Allegro
• 80% = Alibaba’s share of the Chinese ecommerce market
• 83% of ecommerce in India is represented by the big three
marketplaces
• Amazon.de
- Over 31 million users but 20% of sellers are from the UK
• La Redoute.fr
- 50% of French online shoppers looking for fashion visit La
Redoute
- 35% of online shoppers in France are La Redoute’s clients
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© GS1 2016
Unique Product Identification: GTINs
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© GS1 2016
Marketplaces want Product GTINs…
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For many years From 2015 From 2016
© GS1 2015
Reasons to believe: Top retailers rely on GS1
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The GS1 US GTIN Validation Guide is an important tool for improving the quality of product data and the relevance of online and mobile search results. — Walmart
The GTIN Validation Guide will help eBay find and resolve incorrect, duplicate and conflicting product information, improving visibility for merchant offers and enhancing the consumer search experience. — eBay
GS1 standards have been very valuable in our efforts to improve the online shopping experience by harmonising product data and eliminating inaccuracies. — Google
0 100 200
Amazon
eBay
Apple Sites
Walmart
Target
Best Buy
Sears
Etsy
The Home Depot
Macy's
Online Audience (in millions)
Source: comScore, Inc., March 2014
Amazon, eBay, Walmart, Apple iTunes and Google require or endorse GS1 identification for product listing.
Better Search
© GS1 2016
eCommerce integrators
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© GS1 2016
• Industry players, especially those in e-commerce, are increasingly
asking their suppliers to use GTINs on their products.
• The GTIN and associated information about the supplier provide
retailers with a tool for assessing the authenticity of suppliers and
their products.
• However, industry and GS1 face challenges related to our keys:
• Resellers,
• Data Quality,
• Speed of GEPIR response,
• Poor omni-channel seller behaviours,
• Need for a single view/interface.
• All of these challenges can be addressed, in part, by a simple
Global Key Authentication Service.
GS1 MemberCheck
Why do we need a Key Authentication service?
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© GS1 2016 25
Users that require a flat file for their internal validation
systems. (some major ecommerce
companies)
Users that are currently happy with GEPIR
performance.
Users that will benefit from a basic Authentication service that provides a feedback loop to GS1 MOs, helps drive
membership growth, and raises relevance for GS1 around the world.
SUPER-USERS CASUAL USERS OMNI-CHANNEL BUSINESS USERS
Who is the GS1 MemberCheck Service designed for? It is focused toward Omni-channel business users
GS1 MemberCheck
© GS1 2016
How do consumers search the web today?
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Type words into search
Apps
Speak into device
Use location-based searching
TV content provider
© GS1 2016
What about searching for products?
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“red ballet shoes size 6
Retailer app
“Add carrots To my online order”
Nearest shop selling…
Latest “Star Wars”
© GS1 2016
Amazon Echo video here https://www.youtube.com/watch?v=sulDcHJzcB4
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© GS1 2016
E-Commerce today
70% of all sales are influenced by information consumers find on the web.
Whether you’re a brand or a retailer, now is the time to make the information about the products you sell visible and accurate.
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© GS1 2015
What people are saying
“GS1 standards have been very valuable in
our efforts to improve the online shopping
experience by harmonising product data
and eliminating inaccuracies.”
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— Eric Tholomé, Google Shopping
Better Search
© GS1 2015
People struggle to find products, especially as
they move from home to mobile device to store.
When products are uniquely identified and when
structured data is used on web pages to describe
products, search engines deliver better results and
consumers find what they want more quickly.
What we mean
31
Better Search
© GS1 2015
The problem: Does your product speak search engine?
• Shoppers are frustrated by inconsistent search results; sales are lost
• Products have poor or no positioning on the digital shelf
• Difficult and expensive to find and aggregate product data
• Challenges linking social media to products
• Need for control over how the brand is seen by the consumer across channels
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No data detected on your product pages...
© GS1 2016
Why GS1 Smart Search was launched
It is difficult for companies to keep information about the
products they make or sell visible across the web because
products are not consistently accurately identified
in a common machine-readable format.
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Search engines Manufacturer and retailer websites
Other digital channels such as:
Websites that contain product information (price
comparison, etc.) and social media
© GS1 2015
Reasons to believe: More efficient search
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Answers:
a)Amazon.de
b)Ebay.it
c)Footlocker (UK)’ AliExpress
What is the adidas ZX Flux Prism?
a) Sneakers
b) Athletic Shoes
c) Classic Running/Running Shoe
© GS1 2016
How GS1 SmartSearch works
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By adding structured
product information
to your web pages... … you help search
engines display more
relevant search
results to your
consumers...
… which leads to
more click-throughs
to product pages and
more sales.
© GS1 2016
Endorsement of schema.org
First schema.org
external extension
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© GS1 2016
How does it really work?
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© GS1 2016
Google and structured data
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© GS1 2016
Google and structured data
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© GS1 2016
GS1 SmartSearch Technical Evidence
Links to recreate examples.
(If you use a browser where you are logged into a Google account, or you use a site other than
google.co.uk, results may differ).
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• https://ezakupy.tesco.pl/
• https://potravinydomov.itesco.sk/
• https://shoponline.tescolotus.com/
• https://eshop.tesco.com.my/
• https://nakup.itesco.cz/
• https://bevasarlas.tesco.hu/
© GS1 2015
GS1 SmartSearch benefits
Increased sales - Better search results
- Products are more easy to find in other digital channels
Better brand image in the digital world - Better consumer experience when shopping online
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© GS1 2016
GS1 SmartSearch summary
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• Consumer Promise • Trust • Confidence
• Business Case • Search engine friendly
web site • SEO relevance &
accuracy • Low risk • Front end development • Increase sales • Reduce returns
© GS1 2016
Optimised consumer fulfilment
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© GS1 2016 44
In the global supply chain, many different players
take part in moving products from the
manufacturer through suppliers and retailers/
e-tailers and finally to consumers.
Consumers discover, evaluate, purchase and interact
with products through many physical and digital
channels. When products are uniquely identified,
described by trusted information and tracked across
the supply chain, consumers receive the right product,
in the right place, at the right time for less cost.
What we mean
© GS1 2016
Disruption of Value Chains Last Mile impacts the entire Value Chain.
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Manufacturer
Logistics Service Provider
Manufacturer Store
Retail Distribution Centre
Wholesaler Manufacturer
Manufacturer
Manufacturer
Manufacturer
E-Store Consumer
E-fulfilment centre
Parcel service
Pick up point
The Consumer is in Power
© GS1 2016
Disruption of Value Chains Challenges for fulfilment and returns
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• Very small deliveries (Parcels)
• Explosion of Delivery Points (Millions to Billions)
• Huge numbers of SME e-Retailers
• Ever shorter order fulfilment lead times.
• Very high level of Returns (for some types of Product)
• Non-transparent market for Delivery Options
• Fragmentation causing huge Supply Chain Inefficiencies
• Identifying Whom to & Where to deliver increasing difficult
• Increasing restrictions on (urban) delivery options
• Real-time Integrated View of Inventory across ALL locations
• Need for Collaboration enabling Bundling Flows
• Sharply rising T&L costs compared to value per order/product
© GS1 2016
Disruption of Value Chains Emerging landscape
• Marketplaces (Amazon, Alibaba) currently dominant;
adding Transport & Logistics services.
• Large LSP compete on Delivery Capability;
adding Web-shop/marketplace services.
• Other stakeholders joining forces in Open Collaboration Platforms;
Combining independence and economies of scale.
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© GS1 2016
Industry addressing the Challenges Innovations & Best practices
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• Simplifying identification and labelling for Delivery (CEN)
• Urban consolidation centres
bundling flows into congested areas (and back)
• Parcel Lockers / Parcel Shops; Consumers
collecting Orders when and where they prefer
• Import Consolidation services
reducing delivery costs for Consumers
• Collaborative Routing Centres: bundling flows from multiple shippers
• Rethinking Utilisation: Max. Weight AND Max. Volume
• Mix-Move-Match: Build Deliveries close to the Consumer;
Enabling massive merge-in-transit; increase delivery size
• Physical Internet: Manage Packages (LU) first then shipments;
Dynamic Routing optimising next leg using latest available info
© GS1 2016
Opportunity for GS1 standards Value Networks need Extensive Collaboration
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HOT WARM COLD
• Cross Carrier Tracking of Anything from Anywhere to Anywhere (real-time)
• CEN standardisation across Parcel & Postal; Removing barriers to Carrier selection. • Common Parcel ID • Common EDI
• Collaborative Routing Centres
• Cross Border challenges (On-Line Retail)
• Inventory visibility across the Last Mile
• Finding Delivery Options (CEP Carrier, Postal Services, PUDO service providers)
• ID Keys for multitude of Delivery Options
• Returns management challenge
• Urban Consolidation Centres
• Consumer managing her preferences & data.
• Import Consolidation Services support.
© GS1 2016
The problem: We need a breakthrough
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High fulfilment costs,
especially in last leg
Negative impact on
communities
Total volume of goods transported
Efficient use of space in shipping trucks
Total number of shipments =
© GS1 2016
How to solve the problem
• Use GS1 standards to identify products, actors and locations across the supply chain
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• Verify information about products, actors and locations
• Automate the exchange of data between business partners using a trusted exchange
• Invest in data quality to optimise fulfillment processes, enable collaboration and reduce overall costs
• Use product tags with electronic product codes based on GS1 Standards
Trusted Information
Real-Time Inventory
Quality Data
Unique Identification
© GS1 2016
How to solve the problem
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Delivery management
Get goods in, out and to the consumer accurately and quickly
Warehouse management
Move beyond storage to value-added services
Transport management
Plan knowledgeably, execute efficiently
Border procedure management (Customs)
Move products across borders with greater visibility and efficiency
Inventory visibility
Improve inventory productivity and consumer fill rates
© GS1 2016
Reasons to believe: Proven success
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Business process
Manufacturing Logistics Store Time
savings
Goods in and out quantity check X X X Up to 100%
Picking/packing control X X Up to 100%
Stock take/cycle count X X X 80%-95%
Check out process X 60%
© GS1 2015
Conclusion
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© GS1 2015
Be a part of the solution
• Good content is the main ingredient to a reliable, expanding and profitable relationship with the consumer
• Leveraging GS1 standards results in higher-quality data at a lower overall cost and a better shopping experience for consumers
• High quality data is increasingly important across organizations, it is important that all functions (Marketing, Operations, Supply Chain, Sales, IT) work together to identify opportunities to leverage synergies to ensure the data is for the intended purpose
• Get cross-functional resources engaged now to understand opportunities to improve all aspects of the consumer experience
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© GS1 2015
Collaboration fuels commerce
Collaborate on quality data sharing standards so that you can…
• Keep up with consumers, instead of chasing bad data
• Free resources for turning big data into insights
• Focus on competitive advantage
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© GS1 2015
The Solution?
57
Grow the Business
Reduce Costs
Leverage Consumer Insights
Manage Risk
GS1 standards making it easier for people to discover and purchase products wherever they are so that you can…
© GS1 2016
Questions
58
© GS1 2016
David J Smith
Director, Omni-Channel Industry Engagement
D: +32 2 788 7829
GS1 Global Office
Blue Tower, Avenue Louise 326, bte 10
B-1050 Brussels, Belgium
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